“This afternoon, our Conference released its revenue forecast, sharing our fiscal projections and assumptions. Our projection of All Fund tax revenue for New York State is $134 million less than the Governor forecasted for the 2011-12 and 2012-13 fiscal years. Our forecast includes higher projected revenues in Personal Income Taxes, as well as Sales and User Taxes, and lower projected revenue in the areas of Business Taxes, other taxes and the MTA Payroll Tax. On an All Fund basis, our projection anticipates $56.5 million less this year and $89.8 million less next year in State Business Tax revenue.
According to our analysis, New York’s economic recovery is incomplete and private sector job creators have not bounced back as strongly as the Governor anticipates. We believe that the decline in Business Tax revenue is proof positive that Albany must enact policies that will strengthen New York’s economic recovery, especially upstate. Albany needs to move on a pro-growth private sector jobs agenda that should include the following:
- Lowering the Corporate Franchise Tax for all businesses;
- Repealing the Corporate Franchise Tax and Personal Income Tax for manufacturers;
- Elimination of the State’s Temporary Basic Utility Assessment (18-A) imposed on utility companies;
- Rescinding the job-killing “Wage Theft Prevention Act’s” annual notice requirement;
- Delivering unfunded mandate relief that includes freezing county Medicaid costs at the current level and banning all new unfunded mandates; and
- Promoting “Economic Gardening” to help expand “second stage businesses” that employ 10 to 99 people.
Growing the private sector, promoting sensible statewide economic development and cutting job-killing rules, regulations and red tape that hurt job creators are necessary to ensure a full and balanced economic recovery that benefits all New Yorkers.”